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Food, Fuel, Finance Report

It shouldn’t cost money to be poor – call for action to tackle the Poverty Premium

The Poverty Premium is the additional cost for essential goods and services accruing to people living in poverty as a result of their low incomes. It is estimated that the average annual Poverty Premium paid by low-income households is £1,280. Assuming that at least three million households are affected by the Poverty Premium, this amounts to a staggering £3.8 billion each year. In combination with stagnant incomes, low wages, falling benefit levels and rising prices, this is an expense that families in poverty cannot afford.